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Key Events That Moved the Market in September 2020
The following is a review of US and world events from the last month. Please be advised that this content is based upon the opinions and research of GFF Brokers and its staff and should not be treated as trade recommendations.
S&P 500 – Daily Chart – September 1-23, 2020 (Source: Tradingview)
September 1, 2020
- U.S. stock futures edged higher ahead of the release of manufacturing data.
- The August PMI manufacturing index came in at 53.1, slightly below the expected figure of 53.6.
- The August Institute for Supply Managementindex came in at 56.0, above 54.5 consensus,
- The July construction spending report showed an increase of 0.1%, below expectations of a 1.0% increase.
- The September U.S. dollar index futures fell to a new low; its lowest level since June 2018.
- Much of the recent dollar weakness can be attributed to the Fed’s more accommodative policies.
September 2, 2020
- The broader market began the day advancing to new record highs before taking a breather.
- Investors are looking ahead to assess the timing and size of the next round of U.S. stimulus spending packages.
- Private sector employment increased by 428,000 jobs from July to August according to the August ADP National Employment Report, far below the median estimate of 900,000.
- The July factory orders report showed an increase of 6.4%, slightly above the estimated consensus of 6.0%.
- The U.S dollar recovered yesterday from a two-year low. However, the U.S. dollar will likely trend lower on the Fed’s new strategy.
September 3, 2020
- WIth tech stocks buckling, all three indexes saw their worst drop in months; but in light of the strength in this recent rally, today’s plunge took the broader market back only to where it was eight days ago.
- Jobless claims in the week ended August 29 fell 130,000 to 881,000, better than the anticipated 958,000.
- The August PMI composite final index came in at 54.6, The prior figure was 50.3.
- The August Institute for Supply Management index came in at the expected 57.0.
September 4, 2020
- Stocks sold off for a second straight day as a sell-off in tech, the best-performing market sector in 2020, continues its rout.
- Today’s market action gave the broad indexes their first losing week in the past six.
- The US labor market extended its recovery into July but nevertheless slowed as nonfarm payrolls rose 1.763 million versus 4.791 million in June.
September 7, 2020
- Labor Day – markets closed
September 8, 2020
- The broader market slid due to escalating tensions between the U.S. and China, and concerns over the economy.
- The August National Federation of Independent Business optimism index came in at 100.2 topping analyst estimates of 98.6.
- The 2:00 central time July consumer credit report cam in at $12.3 billion, lower than the expected $13 billion increase.
September 9, 2020
- US stocks rise after several days of lower prices.
- Mortgage applications increased 3.0% from last week and 40% higher year over year, according to the Mortgage Bankers Association.
- The 9:00 central time July Job Openings and Labor Turnover Survey (JOLTS) came in at 6.618 million, higher than the expected 5.95 million.
September 10, 2020
- Stocks sagged erasing most of Wednesday’s gains as investors gauge whether the pullback over the last week might be the start of a much larger plunge.
- Jobless claims in the week ended September 5 were slightly higher than expected, coming in at 884,000 versus expectations of 828,000.
- The August producer price index final demand was up 0.3% when an increase of 0.2% was anticipated and the producer price excluding food and energy was up 0.4% when a gain of 0.2% was estimated.
September 11, 2020
- Sluggishness among indexes remain as tech stocks lose their hefty summer gains, bringing the broad indexes near a one-month low.
- However, markets appear to be shrugging off the receding likelihood of additional fiscal stimulus and ongoing tensions between Washington and Beijing.
- Some gains are attributable to better-than-expected quarterly earnings results in some tech companies.
- The August consumer price index increased 0.4% when up 0.3% was expected and the consumer price index excluding food and energy was up 0.4% when a gain of 0.2% was anticipated.
September 14, 2020
- A flurry of multi-billion mergers drove the broader stock market higher on Monday.
- Downtrend lines have been taken out in the past few days on the S&P 500 and the Dow futures charts.
- Stocks are higher despite the stalemate conditions surrounding additional fiscal stimulus in addition to ongoing tensions between Washington and Beijing.
- Traders are awaiting the conclusion of the FOMC two-day meeting that starts tomorrow when the central bank is expected to hold interest rates steady.
September 15, 2020
- Stocks jumped higher today, adding to the strong performance from the previous session, on the back of further tech gains and solid economic data.
- There’s also some renewed optimism for a bipartisan economic stimulus package.
- The September Empire State manufacturing index was 17, beating expectations of 6.5 was expected.
- August industrial production increased 0.4%, less than the anticipated gain of 1.2%.
- August capacity utilization was 71.4%, not too far from the estimated 71.6%.
- Traders are awaiting the conclusion of the Federal Reserve’s two-day monetary policy meeting that starts today.
September 16, 2020
- Stocks wavered despite the Fed vowing years of zero-percent interest rates in the years to come.
- August retail sales increased only 0.6% when a gain of 1.0% was expected.
- The September housing market index came in at 83, slightly beating expectations of 78.
September 17, 2020
- Stock indexes remain in a slog, falling back to last week’s lows after the Federal Reserve at yesterday’s policy meeting offered no promises of new stimulus measures.
- However, the Fed signaled that interest rates would stay near zero until 2023.
- Jobless claims in the week ended September 12 were 860,000 when 850,000 were expected.
- August housing starts were 1.416 million when 1.486 million were anticipated and permits were 1.470 million when 1.530 were estimated.
- The September Philadelphia Federal Reserve manufacturing Index was 15 when 15.5 was predicted.
September 18, 2020 (mid-day)
- Sellers remain in control for a third straight week as the indexes sag toward the weekend on a big tech stock retreat amid renewed unease on the pace of the US economic recovery.
- Consumer sentiment improved, coming in at 78.9, topping analyst expectations of 75.0.
September 21, 2020
- Indexes turned risk-averse as negative headlines from across the globe began hitting the markets.
- The chances of a new economic stimulus deal in the US remains in stalemate.
- In addition to this, U.S.-China tensions are escalating.
- Finally, political uncertainties in Washington appear to be increasing amid the death of Ruth Bader Ginsburg, her SCOTUS seat unoccupied, and the day-to-day political rhetoric leading up to the 2020 presidential election.
September 22, 2020
- Some of today’s market gains can be linked to news that U.S. home sales surged to their highest level in almost 14 years in August.
- The housing market continued to outperform the broader economy.
- According to the National Association of Realtors, existing home sales increased 2.4%
- Federal Reserve Chair Powells suggested Congress would need to spend more money to shore up parts of the economy, and pledged continued support.
September 23, 2020
- Mid-day, stocks are falling as Wall Street’s September sluggishness continues.
- Tech shares are declining once again.
- Currently, the Dow Jones Industrial Average slid 115 points lower, or 0.4% in contrast to earlier in the session, in which the Dow was up 176 points. The S&P 500 is currently down 0.8% and the Nasdaq slid 1.2%.